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The lack of a centralised regulatory body for digital assets has long been a barrier for crypto-investors in the United States. During the former administration’s term, this was a common concern. Given the extent of the bullishness in the crypto-market, many in the sector are curious how the new Biden-led administration can treat the crypto-space.
During a recent White House press conference, Press Secretary Jen Psaki was asked about President Biden’s thoughts on cryptocurrency. Psaki deflected the issue by saying that Secretary Yellen is the appropriate person to speak with. Having said that, she went on to add,
“I don’t think the President has a disagreement with her on this particular issue or most.”
President Biden has repeatedly relied on Yellen’s advice and stance on cryptocurrencies, despite the fact that the latter has often expressed resistance to the same in the past. She recently stated that the exploitation of cryptocurrency is a rising problem. And after her time as Federal Reserve Chair, Yellen remained dismissive of Bitcoin, publicly stating that she was “not a fan.”
It is worth recalling, though, that in her most recent testimony, she expressed a desire to reinforce laws to prohibit the illegal use of digital tools, including terror funding. She also believes that cryptocurrencies have the ability to boost the financial system’s performance. She said,
“I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities. If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these [cryptocurrencies] and other fintech innovations.”
The SEC’s current Chairman, Gary Gensler, has already expressed reservations about the crypto-landscape. Gensler, a Wall Street veteran, will head President Biden’s “financial policy transition” unit. He used to refer to blockchain technology as a “change analyst.”
Legal clarification on the issue of cryptocurrencies is gradually emerging as a pressing need, particularly as an increasing number of Americans begin to accept digital assets. According to a recent study conducted by a global market research platform, the majority of Americans believe cryptocurrency is a secure investing opportunity, and one in every four Americans already owns cryptocurrency.
The crypto-community, for its part, is keen to persuade the Biden administration that it is nothing than a “finance criminal enterprise.”
Kristin Smith, executive director of the Blockchain Alliance, a leading trade association, recently spoke with Fox Business Party, said,
“Our number one priority is helping Yellen understand crypto goes beyond the financing of criminal enterprises. We want her to understand the value of crypto networks.”